This text is part of the special book Plaisirs
With the flowers and leaves growing visibly, our desire to escape into nature is also growing! As peak season for cottage rentals begins, many will yearn to own their own haven. Whether you dream of a cottage to relax in surrounded by your loved ones or rather want to acquire one in order to rent it out, there are many ways to achieve this. First text in a series of three so that this dream can come true.
A second home for yourself
If you want to get out of your routine by regularly escaping into the heart of nature, a chalet as a second home can be a solution. However, be sure to find a piece of paradise that fits the time you have to maintain it, because if you imagine yourself breathing calmly on the edge of the water, it is possible that in reality you rather have to mow the lawn, stain the balcony and fix the dock! “Do not underestimate the time and cost that the chalet will require in maintenance, because if you already own a house, you will suddenly find yourself with two hot water tanks to change, two roofs to redo, two entrances to be cleared of snow and a lot of general maintenance,” underlines François Bourque, real estate broker at Via Capital.
A cottage as a source of income
If your goal is more to generate income, buying a cottage for rental purposes is a better option. For short-term rentals, i.e. for periods of 31 days or less, you must ensure that you comply with municipal regulations regarding zoning, permits, nuisance, safety and sanitation. Next, you will need to register your property with the Corporation de l’industrie touristique du Québec (CITQ), which will require certain documents, including proof of civil liability insurance in the amount of $2 million.
The location of your chalet will obviously have an impact on its rental potential. Choosing a place near a lake, a mountain and a big city could allow you to increase the cost of your rental, therefore generating more income.
self-build
Buying land and building your chalet can save you a lot of money. This is explained by Patrick Girard, president and general manager at Boréal, a company that offers personalized cabin kits. According to him, customers who assemble their own chalet save between 35% and 40%. “We are a bit like the IKEA of the chalet. We offer a self-build kit that includes a 2D plan and a 3D plan. Each piece delivered is made in Quebec and numbered. »
This option may not be possible for people who have little manual skills, but it is interesting for those who are resourceful since companies of this type generally offer videos and trainers to accompany their customers in the process. assembly of the chalet. Otherwise, the prefabricated chalet in the factory also remains an advantageous option.
Buy in group
Owner of Chalets du nord with his wife, real estate broker François Bourque notes as many advantages as disadvantages to buying a chalet as a group. It is therefore a very personal decision. “Obviously, the more of us there are to make the decisions, the more complicated it can become. On the other hand, buying several can help to take the first step in the field of rental cottages since the investment will be less, especially in the down payment. »
Mortgage broker, Chad Béland owns three rental cottages. Recently, he acquired a fourth with three partners: his wife and a couple he knew very little at the time of the transaction. On the other hand, he had access to their financial portrait, which was reassuring. “I won’t hide the fact that at first we all wondered if we had made the right choice, but today the answer to that question is yes, without any hesitation,” he admits.
The four partners share the tasks associated with renting their chalet in Charlevoix as well as the costs associated with maintenance, including cleaning, snow removal and spa maintenance. It is therefore a good compromise that allows them to save time and money while generating profits.
And if we were talking about money?
The financial aspect of buying a cottage is crucial, because while it is an investment, it is also an expense. It is therefore important to know some details.
First, the purchase of a second home for personal purposes is not taxable and the expenses related to this property are not tax deductible. On the other hand, on sale, a percentage of the capital gain will be taxable.
The purchase and sale of a rental cottage must include taxes since the rental is perceived as being a business. The income generated by rentals is therefore taxable, but many expenses are tax deductible.
“There are still programs that allow you to put only 5% down on a second home. It may seem advantageous, but the smaller the down payment, the larger the mortgage. It therefore requires a better income, ”recalls real estate broker François Bourque.
When acquiring a chalet, it is essential to ensure that you have the financial capacity to support the expenses, because after all, the chalet must remain a haven of peace, both for body and mind. for the wallet!
This content was produced by the Special Publications team of the Duty, relating to marketing. The drafting of Duty did not take part.